Homeowners in New York State still reeling over the effects of Hurricane Sandy will be given a small financial reprieve – they will not have to pay hurricane deductibles, possibly saving thousands of dollars, according to the New York Daily News.
The New York State Department of Financial Services has told the insurance industry that New Yorkers shouldn’t be charged hurricane deductibles because Sandy did not have sustained hurricane-force winds when it hit the state.
“That is good news for New Yorkers,” New York State Superintendent of Financial Services Benjamin Lawsky told the Daily News. “It means they will have to pay less out of pocket.”
Hurricane deductibles, part of homeowners’ insurance, often amount to 1 percent to 5 percent of a home’s value – a 5 percent deductible on a home insured for $300,000 would mean a homeowner would have to pay for the first $15,000 of damage.
Dorothy Zaleski of Hub International told the paper that most of her calls since the storm have been about deductibles, with customers dealing with tree and wind damage.
Unfortunately, those with inadequate flood insurance – which is separate from homeowner’s insurance – are mostly out of luck.
Nationwide, only 13 percent of homeowners have flood insurance, which is sold by the National Flood Insurance Program.